Lesson 4 – What’s Outsourcing Going to Cost me?
When it comes to outsourcing, probably the most asked question is “How much is it going to cost?” While it’s impossible to give you an exact amount that getting help in your business will cost, it is possible to give you an idea.
First, know that every single business is different when it comes to the costs associated with outsourcing. Due to the fact that not every business owner will use the same services, need the same amount of help or require the same tasks — there is no set price for outsourcing.
There are however, generally two types of costs involved with outsourcing and depending on the type of work completed and the level of expertise of your contractors, you may find yourself paying one or maybe even both of the following ways.
* Hourly – Many bookkeepers and virtual assistants charge an hourly rate for their services.
* Set Fee – Normally when you get into things like web design, graphic work, and the more specialized services, many contractors will bill you a set fee for work performed.
As for an actual amount per hour, this too will vary with experience and skill set, but to give you a ballpark idea, you can find bookkeepers who charge from $15 per hour all the way up to $75 an hour.
(Having owned an accounting company that offered bookkeeping services I’ve seen the wild fluctuation of price points. And often the quality of service is not the main reason for a price change – in this case “you get what you pay for” isn’t always true.)
A third type of fee is percentage-based. This can usually be negotiated once you’ve worked closely with your contractors for a period of time and trust them. Also, you’ve got to have a successful established business or a proven track record in order to attract a contractor to this type of arrangement.
Before you even begin to outsource anything, you’ll need to determine how much you can afford to pay and go from there. Even baby steps are progress.
** Take Action**
1. Take a break. Or…
2. Reach out and get an estimate from someone who could be your very first team member.
You’re doing great! See you tomorrow, we’ll be covering… “Can You Afford to Outsource?”